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Signet (SIG) Shines on Digital & Inspiring Brilliance Efforts

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Signet Jewelers Limited (SIG - Free Report) has been pretty impressive so far, thanks to its e-commerce endeavors and advancements in the Inspiring Brilliance strategy. SIG is focused on enhancing the online shopping experience through in-store consultations and services like buy online pickup in-store and curbside options. Its Inspiring Brilliance strategy is steadily yielding and fueling market share growth.

Backed by these endeavors, Signet delivered a stellar performance this holiday season. Also, sturdy gains from growth initiatives like unique banner value propositions and advanced connected-commerce capabilities were tailwinds. SIG’s innovation efforts also bode well.

Preliminary same-store sales for the nine-week period ended Jan 1, 2022, or the holiday season increased 30.4% to $2.4 billion. Broad-based sales across all the banners and merchandise categories grew in double digits.  E-commerce sales were up $52.1 million year over year while brick-and-mortar sales soared $499.9 million.

A stellar holiday show prompted management to raise guidance for the fourth quarter and fiscal 2022. Signet projects total revenues of $2.77 billion and same-store sales of 22% for the fiscal fourth quarter. SIG expects an adjusted operating income of $388 million. For fiscal 2022, SIG expects total revenues of $7.78 billion, indicating a rise from $7.41-$7.49 billion projected earlier and $5.23 billion generated last fiscal. While same-store sales are predicted at 48%, adjusted operating income is now forecast at $885 million.

Shares of this jewelry retailer have appreciated 42.1% in the past six months, outperforming the industry’s 15.1% growth. An expected long-term earnings growth rate of 8% and a VGM Score of A for this currently Zacks Rank #1 (Strong Buy) stock speak volumes. You can see the complete list of today’s Zacks #1 Rank stocks here.

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Signet’s digital business is the key driver. SIG looks forward to take the connected-commerce approach to the next phase of growth. This concept helps combine customer experiences, leveraging in store and online as well as mobile and ubiquitous delivery. This is helping SIG cater to customers’ needs more aptly. Such efforts will keep favoring its results and help boost its channel-agnostic retailer capabilities.

As part of the Inspiring Brilliance strategy, Signet uses data-driven insights to target the new and existing customers. It is working toward evolving its Customer First strategy into a consumer-inspired experience, which includes tailored merchandise assortments and expanded services. SIG is regularly broadening assortments across its Zales, Kay and Jared brand lines.

SIG’s Inspiring Brilliance strategy focuses on expanding big banners, boosting service revenues, broadening the Accessible Luxury and Value segments as well as accelerating digital commerce among others. Signet’s acquisition of Diamonds Direct, known for unique bridal-focused collections, appears encouraging. This now became SIG’s highly-personalized bridal destination, offering customers valuable bridal experiences.

Wrapping up, Signet is poised well for growth, considering all the above-discussed factors. Analysts are also optimistic about Signet, evident from higher earnings estimate revisions. The Zacks Consensus Estimate of $4.91 for the fourth quarter and $12.15 for fiscal 2022 increased 31.6% and 11.8%, respectively, over the past 30 days.

More Solid Picks in Retail

Some other top-ranked stocks are Capri Holdings (CPRI - Free Report) , Boot Barn Holdings (BOOT - Free Report) and Tapestry (TPR - Free Report) .

Capri Holdings, which offers accessories and footwear, sports a Zacks Rank of 1 at present. CPRI has an expected earnings per share (EPS) growth rate of 30.9% for three-five years.

The Zacks Consensus Estimate for Capri Holdings’ current financial-year sales and EPS suggests growth of 36.3% and 210.5%, respectively, from the year-ago period’s corresponding figures. CPRI has a trailing four-quarter earnings surprise of 1,018.2%, on average.

Boot Barn Holdings, a lifestyle retailer of western and work-related footwear, apparel and accessories, is presently Zacks #1 Ranked. BOOT has an expected EPS growth rate of 20% for three-five years.

The Zacks Consensus Estimate for Boot Barn Holdings’ current financial-year sales and EPS suggests growth of 62.6% and 220.8%, respectively, from the year-ago period’s corresponding figures. BOOT has a trailing four-quarter earnings surprise of 47.1%, on average.

Tapestry, a renowned designer of fine accessories, presently carries a Zacks Rank #2 (Buy). TPR has a trailing four-quarter earnings surprise of 29%, on average.

The Zacks Consensus Estimate for Tapestry’s current-year sales and EPS suggests growth of 15% and 18.5%, respectively, from the corresponding year-ago period’s levels. TPR has an expected EPS growth rate of 12.3% for three-five years.

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